The SBU blocked illegal oil production at a state well located in Ivano-Frankivsk region. 

SBU operatives established that a foreign-invested company organized illegal oil production in the state well in Dolynskyi district, Ivano-Frankivsk region, avoiding the payment of mandatory taxes. The offenders also did not have any permission documents. They managed to extract crude oil totalling over UAH 1 million (circa 36,000) and illegally sold it to refineries in eastern Ukraine. To legalize crude oil, the offenders registered such fraud under the guise of legal business transactions. 

Allegedly, the entrepreneurs gained an access to the production due to assistance of the officials of a state institution in Ivano-Frankivsk city. This well was on the balance sheet of the institution to carry out research works. According to intelligence, the offenders intended to initiate illegal oil production in another wells of the state fund.

The SBU seized 40 tons of oil, documents, ‘black’ accounting records, seals, computers, mobiles, UAH 130,000 (USD 4,642) in cash, allegedly received from illegal activity. 

Experts are estimating the scale of environmental damage caused by spilled oil. 

Urgent investigation is ongoing within criminal proceeding initiated on unlawful manufacturing, storage, sale, or transportation for selling purposes of excisable goods and misappropriation, embezzlement and conversion of property by malversion. Individuals involved in fraud are being identified. 

The operation was conducted jointly with the Main SFS Department in Ivano-Frankivsk region under the legal supervision of the regional Prosecutor’s Office.